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Old 20.02.2012, 01:50
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is the property market creating a bubble?

i see Switzerland as the place to live in for the next 10+ years, maybe for ever.
However, i get scared when I see the price of an apt in Basel area...near or above the 1M for a decent one.
Then I read this article and it seems that I'm not the only one noticing that the prices are getting too high.
So...would you say that this is still a good moment to buy a property in CH or is it better to wait for the bubble to deflate?
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Old 20.02.2012, 08:41
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Re: is the property market creating a bubble?

Thing about bubbles is....you only know it was a bubble after it has burst Before that, it is something flimsy and sometimes beautiful

Whenever you buy any kind of product from an open market at a given price....exactly half the people think its a good price to sell and exactly half think its a good time to buy or the market wouldn't operate at all.

My advice is that if you see a property you like and can afford and the purchase is about living, rather than making money, just buy it and enjoy it. You'll get lots of opinions here about the future of the property market, but if it was as clear as the newspaper reports make us believe, the market would grind to a halt as people would always be waiting
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Old 20.02.2012, 09:39
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Re: is the property market creating a bubble?

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i see Switzerland as the place to live in for the next 10+ years, maybe for ever.
However, i get scared when I see the price of an apt in Basel area...near or above the 1M for a decent one.
Then I read this article and it seems that I'm not the only one noticing that the prices are getting too high.
So...would you say that this is still a good moment to buy a property in CH or is it better to wait for the bubble to deflate?
Depends who you ask. According to professional real estate observers, there is a high risk (cf. UBS, Wuest&Partner). According to sellers, it's the right moment to buy . As a potential buyer, given current crazy prices - overshooting these from the 90's bubble which eventually bursted, I decided to wait & see.

There is a complete thread on this topic: Housing bubble about to explode in the Arc Lemanique - read it and build your own opinion..
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Old 20.02.2012, 09:46
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Re: is the property market creating a bubble?

I don't expect a big drop in prices as long as people are buying at true market worth. This is somewhat governed by the lender who will demand significantly more of your money if they see the [risk] property not being able to cover the loan should you default.

The main indicator is that the market is sometimes slow but my experience comes from looking at overpriced older properties which need renovation which are more expensive than newer properties.....and have not shifted.

Also in the border regions, you get the strong € slowing demand from cross-border folk.

1 million today will not become 9/8/700k tomorrow unless it's overpriced.

Oh and there are many places owned and unoccupied for tax and some might say money laundering reasons.....
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Old 20.02.2012, 10:14
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Re: is the property market creating a bubble?

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Also in the border regions, you get the strong € slowing demand from cross-border folk.
The what?!

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1 million today will not become 9/8/700k tomorrow unless it's overpriced.
Hence the OP asking "is it overpriced?", which it may well be. The latest luxury development here in Horgen has been on the market for half a year now. Nobody wants to pay CHF 10'000 +charges per month to live in a 200 sqm concrete box sitting on top of a busy intersection, away from the lake with views only from the top floor. That means that the owner of that pile has to service the mortgage from other funds, month after month. Ler's see how deep their pockets are...
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Old 20.02.2012, 10:20
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Re: is the property market creating a bubble?

Another question one should ask one's self: how stable is your job/income stream?

Companies are moving more and more jobs out of Switzerland; do you expect this to affect you?

If you don't expect to be affected by the changing economy, buy at whatever price seems fair.

If you are stretching to meet the costs or if resale value is important to you, maybe caution would be adviseable.

(And if one is non-EU, it would be prudent to make sure one understands what, if any, affect one's permit situation might have.)

The Swiss market is unlike other property markets in that one does not buy for the short-ish term. The question of a bubble is less important as most buyers do not plan to sell in the next decade - or ever. But if you had to sell... here is where one should think carefully.

Good luck with your decision.
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Old 20.02.2012, 10:22
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Re: is the property market creating a bubble?

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The what?!
Good spot, the weak € is of course what my brain was saying but these fingers are sometimes disconnected. Proofreading is important!!
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Old 20.02.2012, 11:08
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Re: is the property market creating a bubble?

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i see Switzerland as the place to live in for the next 10+ years, maybe for ever.
However, i get scared when I see the price of an apt in Basel area...near or above the 1M for a decent one.
Then I read this article and it seems that I'm not the only one noticing that the prices are getting too high.
So...would you say that this is still a good moment to buy a property in CH or is it better to wait for the bubble to deflate?
you can buy flats in kleinbasel for as little as 300k.
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Old 20.02.2012, 11:11
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Re: is the property market creating a bubble?

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Depends who you ask. According to professional real estate observers, there is a high risk (cf. UBS, Wuest&Partner).
who have traditionally been wrong. yesterday, i opened a brochure given to me by UBS at the time i bought my flat where they predicted that IRs would suddenly go up in June 2011.
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